US HB7721

Amends the Child Care and Development Block Grant Act of 1990 to establish a 5% overpayment threshold for state child care assistance programs

States with overpayment rates exceeding 5% of aggregate payments must submit a corrective action plan to the Secretary for review and approval, along with compliance reports

States with overpayment rates above 5% for 2 consecutive fiscal years become ineligible for child care block grant funding

Ineligible states may regain funding eligibility by demonstrating they will reduce overpayments to 5% or less, or by showing significant progress on their corrective action plan